ABC, Inc. is computing its inventory on December 31, 2019. The following information relates to the five major inventory items regularly stocked for resale:

Item	Quantity on Hand	Ending Inventory, December 31, 2019 Unit Cost when Acquired (LIFO)	Net Realizable Value (Market) on December 31, 2019
A	100	$49	$35
B	150	$56	$52
C	25	$120	$80
D	300	$70	$62
E	700	$19	$20

Using the lower of cost or net realizable value, compute the total inventory valuation on December 31, 2019.

What will be the effect of the write-down of inventory to lower of cost or market on the cost of goods sold for the year ended December 31, 2019? (Hint: Fill in "Increase" or "Decrease"first , then fill in the number)

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